By Kerry E. Kaylegian
There are several things to consider when starting a Value Added Dairy business, such as marketing, manufacturing, and on-farm production to help launch your successful business!
- Perform consumer market research. Who are your potential customers? What are their needs?
- Determine your marketing mix. What is your product line?
- Deﬁne your product. What will you make? How much will you make?
- Deﬁne how you are going to make your product. Research manufacturing processes and key process parameters.
- Deﬁne the facility and equipment needs to make, store, and distribute your product.
- Get regulatory approval for your facility.
- Determine how much milk you will need. Consider that you can use 100% of your milk production; a portion of your milk and market the remainder; or purchase milk from another producer.
- Plan for the future. If your value-added product attribute depends on the production system, then plan for the transition.
- Plan for management of both businesses. Will the farm and the value-added business be managed separately or together?
- Develop a business plan that includes: business goals and strategies, a ﬁnancial plan, and an HR plan, a marketing plan, and a processing plan.
- Perform an investment analysis and project cash ﬂow. These will allow you to assess the profit potential.
- Build a good advisory team.
A Successful and Sustainable business is the result of a solid understanding of your markets and the technology needed to make your products, and a commitment to the highest quality farming, manufacturing, and business practices. Source : psu.edu